- Bedrooms: 0
- Bathrooms: 0
- Built: 120m2
- Energy Rating: In process
LEASEHOLD FOR SALE 79.000€
This excellent restaurant is located on the busy Cabo Roig strip that sees hundreds of thousands of visitors every year. The Recent Saint Patrick’s Day Parade alone drew 20,000 people according to police estimates. Without exception, every business on the strip had their “Best Day Ever”. This event alone brings visitors for a full week and is the opening of each new season that lasts until mid-November.
This fully-fitted and very popular restaurant with bar is now available for rent. The restaurant has a substantial turnover and the rent is only 1.700€ per month. You can buy this lease that has been renovated and re-decorated last year, new appliances such as fridges, industrial microwave, fryer and newly tiled behind bar, with furniture, equipment, stock, and excellent goodwill for only 79,000€. The terrace seats 30 people with a further 50 people inside in the spacious 125m2 (1,250 square foot) interior space.
This is an ideal business for an individual or two partners. Residential property rental in the area is reasonably priced, the cost of living is low and the weather is the best in all of Europe. The Cabo Roig strip is within a few minutes’ walk of beautiful blue flag beaches and two marinas. This area is truly a piece of heaven on earth and this excellent business opportunity is too good to pass without a serious look.
WHAT IS A TRASPASO? This unfamiliar term is best described as the "buying price for a business lease". It is an up-front payment paid by a new tenant to a previous tenant (or his agent) for the goodwill of a business AND / OR the equipment, furnishings and decoration in a business property for rent/lease. A traspaso is a business investment. In some cases the new tenant buys both the goodwill and the equipment of a business.
BUYING THE GOODWILL (ONLY) OF A BUSINESS: When you buy the goodwill (only) of an ongoing business, the contract will specifically state that you are receiving the property fully furnished. Later you have the right to sell the goodwill of the business (not the equipment) under the same conditions to a third party at a price agreeable to you both, so the price you pay for a traspaso is a genuine investment, with the potential to sell at a profit.
BUYING THE LEASE OF A CLOSED BUSINESS PREMISES: In this case you are technically buying the equipment and have the right to sell that equipment. Obviously the equipment does not include floors, walls, ceilings, bar, doors, electrical or plumbing installations but does include kitchen equipment, display cabinets, pictures, memorabilia, air conditioning, cook wear, cutlery, crockery, tables and chairs. This contract should NOT say that the property is fully fitted because this implies that it should be returned in the same condition.
If you buy a closed business premises, and you turn it into a going concern, then, you can then sell this (equipment) traspaso together with the goodwill you have created, to another at a far greater price than you originally paid.
A traspaso like rent should be officially paid with an invoice and is subject to IVA at 21%. You can use that invoice to reclaim that IVA and to reduce the tax paid by your business.
In order to open and run a new business in Spain it is OBLIGATORY to have an opening license in your (or your company) name. With most municipalities in Spain (including Torrevieja), it is not permitted to open a business without having an opening license in place, however, because of the backlog in Orihuela Costa it is possible to open once renovation work has been completed and an opening license application has been made to the town hall, so if you want to open a shop or café-bar and you have done all this you could open the next day.
It then takes at least one month for the town hall inspectors to inspect that all work has been completed according to regulations and the plans submitted. Other types of businesses/uses must comply with a whole range of varying regulations, a café-bar is totally different to a pub, an engineer is essential.
Before signing any contract or paying any deposit it is highly advisable that you employ the services of a qualified engineer or architect. For a small fee of 150€, an engineer will check that the property or properties you are interested in, are fit for purpose. The engineer will advise you what work and paperwork you will need, to obtain an opening license. If all that is needed to obtain an opening license (rarely) is to change the name, then the cost will be 350€. Normally an electrical project and opening license project will cost about 1,600€ however most engineers will deduct the original 150€ from this price. Payments are subject to 21% IVA (reclaimable).
We are happy to give you the contact details of an English speaking, well experienced engineer who has specialised in dealing with the town halls in this area (Orihuela Costa, Torrevieja, Torre and Pilar del la Horadada).
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